I propose to take Questions Nos. 236 to 241, inclusive, 246, 247, 250 to 255, inclusive, 268 and 269 together.
Concerted efforts to acquire sites in the south Dublin City area for schools have been ongoing in my Department in the context of existing and expected requirements at both primary and post-primary level since 2012. Previous searches for additional prospective school sites in this area in co-operation with Chief Valuer’s Office and Dublin City Council focused on sites which were on the market, potential sites within Dublin City Council’s portfolio and also substantial land holdings of other bodies within the area. It was noted that there was a very limited number of potential sites with the South Dublin City area. My Department also consulted with NAMA in relation to any potential site options available.
It was in the context of such limited school site availability in south Dublin City that officials in my Department approached the Irish Greyhound Board in February 2016 with a view to considering the feasibility of providing school accommodation on the Harold’s Cross site. Subsequently, in July 2016, in the course of my Department’s engagement with the Irish Greyhound Board regarding the Harold’s Cross site, it was made clear to my officials that while Savills real estate agency had been retained by the Board to advise on the asset in question, they were not actively seeking to sell it at that time.
Nonetheless, in the context of ongoing school site requirements, a detailed site analysis and feasibility study of the Harold’s Cross site was carried out in order to assess the potential of the site. This technical assessment of the property concluded that the property is suitable for the provision of a significant level of school accommodation.
Having considered the uncertainty in relation to timeframe for acquisition and zoning, it was decided that the potential acquisition of the Harold’s Cross stadium would not be pursued at that time. However, while the site was not available at that time, the suitability of the site had been established relative to other options identified as part of an overall site search in the area. My Department was not aware of, and did not discuss with IGB, timeframes for closure of the stadium.
My Department became aware of the decision to close the Harold’s Cross property in February of this year, when the Irish Greyhound Board made its announcement to that effect. My Department was not aware, in advance of that time, that a decision had been taken to close the greyhound stadium. My Department was contacted subsequently by Savills to indicate that the Harold’s Cross site would be on the market and the Department could be given access to value it if required. Contact was also made by the Department of Agriculture Food and the Marine, since my Department had previously made that Department aware of potential interest in the site.
On foot of the information that the Harold’s Cross site was about to go on the open market, officials in the Site Acquisition section of my Department consulted with the Forward Planning section in relation to proposed future growth and school needs in the area. The Forward Planning section of my Department uses a Geographical Information System (GIS) to identify where the pressure for school places across the country will arise. The GIS uses data from the Central Statistics Office, Ordnance Survey Ireland, the Department of Social Protection and my Department's own databases. With this information, my Department carries out nationwide demographic exercises at primary and post-primary level to determine where additional school accommodation is needed.
Harold’s Cross Greyhound Stadium is situated in the Department’s school planning area of Dublin 6/Clonskeagh and is immediately adjacent to the school planning areas of Dolphin’s Barn/Dublin 12; Dublin 8; Dublin 2 /Dublin 4; and Dublin 6W. An initial review of demographics in relevant school planning areas adjacent to the site indicate significant increases at both primary and post-primary levels likely to require provision for additional school sites in the area, beyond those currently in the ownership of the Department. Initial projections indicate additional demand of up to 5,000 places at post-primary level across the Dublin 6/Clonskeagh school planning area (in which the property is located) and the adjoining school planning areas in the South Dublin City area.
In the context of the previous analysis of options to provide the expected school places required, my Department is acutely aware that existing schools in the area do not have the capacity to provide the accommodation that will be necessary for such a huge increase in student numbers. Furthermore, a diversity of provision is also required to allow for parental choice. Accommodation to meet the demand for additional school places anticipated in the south Dublin City school planning areas would, therefore, require multiple sites or property, each of significant capacity, in an area where land availability is known to be very limited.
The announced sale of this property by the IGB represented an invaluable opportunity for my Department to acquire a site which was known to be suitable for school provision in the context of extremely limited alternative accommodation solutions. The decision taken by my Department to acquire the Harold’s Cross Greyhound Stadium was, therefore, taken in the context of the requirements identified in the demographic analysis and of the impending disposal of the property on the open market.
In order to advance the proposed acquisition my Department specifically requested of the IGB that the Department of Public Expenditure and Reform Circular 11/15: Protocols for the Transfer and Sharing of State Property Assets be followed. These protocols provide for the Valuation Office to furnish a binding estimate of value in accordance with international standards issued by the International Valuation Standards Council. The report compiled by the Valuations Office indicated that the property had a value of €23 million. This report took into account, inter alia, zoning and the requirement to clear the site of existing structures.
The Deputy will appreciate that the current trend in land values has been that land prices are increasing. Given that this asset was about to go on the open market, my Department assessed the potential of acquiring this site relative to the potential of acquiring alternative sites. From a school’s perspective this site is ideally located to serve South Dublin City needs and it provides certainty in respect of suitability and availability. It had already been established that land-banks of sufficient size are scarce and where such sites have the potential for residential or commercial development, they would be valued accordingly. The proposed acquisition costs were appraised in this context.
While the current zoning of the site does not permit the development of a school on the site, it could be facilitated by means of a variation to the City Development Plan. Department officials have discussed the zoning of the property with Dublin City Council officials and have agreed with the Irish Greyhound Board that the proposed acquisition would be subject to the necessary change in zoning for the property.
The proposed acquisition is, in the first instance, subject to the consent of the Minister for Agriculture, Food and the Marine and the Minister for Public Expenditure and Reform. Draft contracts have not yet been received but my Department has been informed that these are being prepared. By agreement with the Irish Greyhound Board, the contracts will reflect phasing of the payment of the purchase price in respect of the proposed acquisition with a view to spreading the cost to my Department across two years’ financial allocation. This cost will be met within the Department’s overall capital budget as sanctioned by the Department of Public Expenditure and Reform.
